Why should employees work from home in the Philippines?



Modified on: Fri, 18 Apr, 2025 at 12:24 PM

When hiring employees in the Philippines, particularly for remote work or work-from-home arrangements, Horizons recommends that employees work from their home office. This approach offers numerous benefits and ensures compliance with local labor laws under the Employer of Record (EOR) model.


Key Reasons for Working from Home

1. Compliance with Local Regulations:
One of the main reasons to have employees work from their home office is to ensure compliance with Philippine labor laws. A home office setup helps avoid complications related to work hours, employee safety, and taxation, which are critical under the EOR framework.

2. Avoiding Permanent Establishment Risks:
By having employees work from home, employers minimize the risk of creating a permanent establishment (PE) in the Philippines. A PE could lead to additional tax obligations or regulatory requirements for the client, making a home office arrangement a more compliant and practical option.

3. Enhanced Flexibility and Productivity:
Remote work fosters a flexible environment where employees can manage their time and workspace. This often leads to increased productivity and work-life balance, benefiting both employees and employers.

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